Doximity (DOCS) Q2 2027 earnings summary

Executive summary

• Q2 FY2027 revenue was $174.537M, up 4% YoY; adjusted EBITDA was $88.865M at a 50.9% margin, while GAAP net income fell to $34.730M.

• Active workflow prescribers grew 34% YoY to a record, with ~50% of U.S. prescribers using workflow tools; AI health-system clients exceeded 190.

• AI Search bookings reached eight figures, with 16 of the top 20 pharma companies purchasing programs; FY27 revenue guidance rose to $678M–$683M.

Financial highlights

• Q2 revenue was $174.537M versus $168.525M; operating income was $43.922M versus $63.681M.

• GAAP net income was $34.730M versus $62.059M; diluted EPS was $0.18 versus $0.31. Non-GAAP diluted EPS was $0.36.

• Adjusted EBITDA was $88.865M versus $100.830M, down 12% YoY; adjusted EBITDA margin was 50.9% versus 59.8%.

• Free cash flow was $91.332M; cash, cash equivalents and marketable securities totaled $713.2M at quarter-end.

• Non-GAAP gross margin was 87.8% versus 91.9%; most increased cost of revenue reflected AI investment, with over 90% of incremental AI cost tied to clinician usage.

Outlook and guidance

• Q3 revenue guidance is $195M–$196M and adjusted EBITDA guidance is $102.5M–$103.5M, implying a 53% midpoint margin.

• FY27 revenue guidance rose to $678M–$683M, with a $4.5M higher midpoint; adjusted EBITDA guidance is $317M–$325M, a 47% midpoint margin.

• Second-half revenue growth is expected to slightly accelerate versus H1; Q4 growth is expected to be similar to Q3, with lower visibility until pharma upfront contracts conclude.

• AI Search revenue is expected to ramp gradually through calendar 2027 as programs clear medical-legal review.

• FY27 non-GAAP gross margin is expected in the mid-to-high 80% range; diluted share-count guidance is 187M–193M.